Oman targets US$2.3B for polymer, packaging projects under Vision 2040

OMAN – Oman’s Industrial Strategy 2040 allocates RO 935 million (US$2.43 billion) to polymer and packaging projects, with the manufacturing sector targeting RO 10.7 billion (US$27.8 billion) GDP contribution by 2040 as the SOHAR Port and Freezone advances a polyethylene foam packaging plant to strengthen local supply chains.

The manufacturing sector contributed RO 869 million (US$2.26 billion) in Q1 2026, with non-oil merchandise exports reaching RO 2.739 billion (US$7.12 billion) by May 2026, up 1.5 percent year-on-year. 

The Industrial Strategy targets non-oil exports exceeding RO 10 billion (US$26 billion) by 2030, covering metals, chemicals, energy-related industries and food products. 

Re-exports surged 64.4 percent to over RO 1 billion (US$2.6 billion) during the same period. 

Packaging and Circular Economy Opportunities Emerge as Strategic Sector

Oman has identified 30 priority industrial activities organised into clusters covering food, petrochemicals, healthcare, metals and metallurgy, electromechanical industries, environmental industries and renewable energy. 

Oman Vision 2040 allocates RO 935 million (US$2.43 billion) to polymer and packaging projects, including a PTA and PET complex that reduces reliance on imported kraft paper.

The National Waste Management Policy aims to divert 9 million tonnes of GCC packaging waste and unlock a US$138 billion circular economy prize by 2030. 

Oman’s corrugated packaging market is benefiting from the Local Content Policy, which favours Omani-made packaging in public tenders, ensuring baseline production volumes for domestic converters. 

The SOHAR Port and Freezone has signed an agreement with United Packaging Industries to establish a polyethylene foam packaging plant in SOHAR Freezone, enhancing supply chain integration and supporting Oman Vision 2040’s goals for sustainable packaging solutions.

Smart Manufacturing and Workforce Development Underpin Packaging Sector Growth

The Smart Production Factories Programme, launched in 2024, assessed 20 Omani factories using the Smart Industry Readiness Index (SIRI) and has expanded to target 60 factories, with 45 assessed by June 2026. 

The Kafa’a Lean Manufacturing Programme, launched in June 2026 with nine participating factories, trains Omani practitioners in Lean Six Sigma methodology, with estimated annual savings of RO 360,000 (US$936,000) per factory through higher production capacity, reduced waste and lower operating costs. 

The strategy targets private-sector investment of 54 percent and foreign investment of 34 percent, while deepening connections between industrial projects and supporting activities including logistics, packaging, maintenance, software, automation and engineering services.

The integration of advanced manufacturing technologies in packaging operations is expected to create higher-quality employment opportunities for Omani citizens.

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